Dube Mall

 

The renovation to Dube Village Mall in Indanda is very near 100% completed, barring some external signage, pumps, tanks (awaiting plan approval) and a few tenant reshuffles we are currently busy with.

 

In total R6,0m was spent on the revamp with a further provision of R1,5m for the pumps and tanks and parking area upgrades making it R7,5m in total. The pumps and tanks are required to make our sprinkler system complaint with the latest fire regulations. This was made necessary by the Municipal water pressure being reduced to prevent repeated failure of the ailing infrastructure rendering our sprinkler system inoperable. We are not very happy about this unforeseen expenditure, but unfortunately there is no way to escape it. 

 

The installation of the pumps and tanks has been particularly problematic requiring a Right of Way Servitude in favour of BP being cancelled, and a special consent application with DOT being approved. Both have now been achieved and plan approval is hopefully imminent. Being the innovators that we are we will use the pumps and tanks to house a large bill board which we will lease out to advertisers. Hopefully turning a negative into a positive and at least recovering some of our capital expenditure on this item.

 

Despite Dube Village Mall's particular challenges, and these project all have their challenges, it has been particularly successful project for Unity, achieving a 15% yield on final cost with a 100% ROE in 14 months. It has been particularly rewarding for us having witnessed the community upliftement first hand as a result.  Several new jobs have been created excluding new tenants staffing requirements and investors have achieved a great return, making it a win / win all round.

 

This is certainly something we would like to repeat, and Philani Valley Mall should produce similar results for us.